New consumer emerged: Financially constrained but more digitally savvy

KUALA LUMPUR 20 Julai – The financially constrained and psychological impact of COVID-19 has driven the new emergence of new consumer.

A survey by KPMG International found the shifting in consumer’s trend saw they are financially constrained but more digitally savvy.

They are also more thoughtful and selective in their decision-making, while keen to see COVID-19 as an opportunity to reset values in the world.

KPMG’s Head of Consumer, Industrial Markets and  Manufacturing in Malaysia, Siew Chin Kiang said, consumers’ spend is impacted by both the decrease in disposable income and the psychological impact of COVID-19.

“We see new segments arise, separated by their need to group products and services into categories of necessity, and with spending behaviors moderated by financial attitudes.

“Overall, four in 10 are financially worse off, with another 13% deferring major purchases,” said him in a statement.

Based on data from over 12,000 consumers around the world, the findings revealed that the three most prominent purchase drivers influencing consumers’ decision-making are value for money (63%), ease of buying (42%) and trust in brand (41%).

Value for money is the single most important factor in decision-making as a direct result of the financial concerns that now affect consumers, with nearly half of respondents saying it is more important now than pre COVID-19.

The pandemic has also amplified the need for easy access to products and services and relevant information.

KPMG’s survey found online purchasing and contactless payment options have become the norm for most consumers, with the desire for safe contact-free purchase options reinforcing this trend.

Nowhere is the combined impact of the evolving consumer trends more noticeable than in the retail sector, with physical retail most under pressure.

Therefore, there are four main areas in order to build enough business resilience for retail executives which are evolve the business retail model, prioritize purpose, rethink the cost of doing business and know the customers. – DagangNews.com